Many of you have been waiting patiently for Palladium to post it's policy about the use
of Palladium intellectual property on the internet. We at Palladium appreciate your
patience.

Since early summer, we've been considering a number of competing (and related) issues,
trying to come up with a policy that is fair to all concerned; gamers, the industry, and
copyright holders alike. We at Palladium (like most of you) wear all of these hats at one
time or another; some of the time we're creators who are concerned with legitimate
protection of the "sweat of our brow". Other times, our greatest concern is the
fun of playing. Balancing these interests, we've come up with a policy (please see below).
We hope that this policy is acceptable to all of you, and that it will help all of us wear
all of the hats we need to in this industry.

RIGHTS AND LICENSES

Palladium is happy to have individuals play Palladium games and supplements on the net
or other on line services, without royalty, so long as the play is for personal enjoyment
and not financial gain.

Palladium is also happy to have you create derivative works of Palladium text, so long
as these derivative works are used solely on the net or other on line services for
personal fun.

We cannot grant permission to create derivative works, or to take any of our other
registered Copyright rights, for commercial purposes or financial gain, unless there is a
separate, written agreement between you and Palladium.

Please note that permission to play on-line does not include permission to down-load
hard copies of Palladiums copy-written materials. If you want a hard copy of a Palladium
product, buy the book! After all, if people stop buying the books, we won't be able to pay
our writers and artists to keep creating, and there will be nothing for anyone!

Palladium and its agents cannot be responsible for any violation of other people's
rights which you might commit while using Palladium products. For example, if someone
combines a Palladium product with another creator's product, thereby infringing the
copyright of the other creator, Palladium is not responsible. In such a case, it is only
fair that the person who commits such a violation is solely responsible for their actions.
In addition, the violator is also responsible for any damages that Palladium may suffer
because of the violation.

To implement the policies described in the three paragraphs above, Palladium needs to
formally grant you a "limited license" to use Palladium text. Please consider
this paragraph your formal "limited license" to use Palladium copy-written text
and trademarks solely for your own personal use and enjoyment on the net and other on-line
services. In addition, Palladium grants you a "limited license" to create works
which are derivative of Palladium copy-written text, so long as the resulting
"derivative works" are used only on the net and other on-line services, for
personal fun, and NOT for financial gain.

In order to keep this "limited license", you must always use proper Palladium
notices (see section below on "Notices"), and must also comply with all
Palladium policies (including but not limited to policies about liability for your actions
on the net and other on-line services) which we post.

We're going to keep an eye on how our policies are being received and followed. We also
expect some of you to raise issues about our net policies which we should think about. In
short, we expect our net policy to evolve. Palladium therefore reserves the right to
change or even revoke this limited license. Palladium also reserves all rights which are
not specifically granted above.

DERIVATIVE WORKS

Above, we've stated our policies about your use of Palladium intellectual properties. A
related policy involves Palladium's use of works created by you using Palladium
characters, settings, etc.

Under the U.S. Copyright Act, these are "Derivative Works" which, legally we
have a right to prevent (take a look at Section 106 of the Copyright Act). Despite our
rights, we are willing to allow the creation of derivatives of our text strictly for
personal use (though not for financial gain).

In addition, we are not interested in owning the derivative works which you create
strictly for fun and personal use on-line. Unlike some other gaming companies, we are not
going to exploit these derivative works merely because you posted them in a certain place.
Rather, if we are interested in any work which you post, we will negotiate with you to
acquire rights. If we reach an agreement with you, fine. If we don't, you can still use
the derivative work for you personal, non-financial purposes (obviously, you still can't
use or license a derivative work for financial gain in any way, under the Copyright Act).

We sincerely hope that Palladium's new Net policy leads to hours of great gaming on net
for all of us. Let us know what you think!

NOTICES

Because of the way Copyright and Trademark laws work, anyone who up-loads any Palladium
material must include proper Copyright and Trademark notices.

COPYRIGHT NOTICES

For all text and other works covered by the U.S. Copyright Act, insert a copyright
notice like the one that appears in the front of the book. For instance, a proper
copyright notice for Rifts(R) would be:"(C) 1983, 1987, 1988, 1990 Kevin Siembieda; (C) 1995 Palladium Books, All rights
reserved world wide. No part of this work may be reproduced in part or whole, in any form
or by any means, without permission from the publisher. All incidents, situations,
institutions, governments and people are fictional and any similarity to characters or
persons living or dead is strictly coincidental."

This kind of notice must be included at least once any time you are uploading any
derivative Palladium material.

TRADEMARK NOTICES

For any use of our trademarks (whether registered or unregistered), the proper notice
should be used whenever the mark is used. There are two (2) kinds of trademark notices.
The simplest type is the (R) for registered trademarks and the (TM) for unregistered
trademarks. These "simple" notices should be used every time a Palladium mark is
used, whether in a title or text.

The (R) is used each time a registered mark is used, and the (TM) is used each time an
unregistered mark is used (see below for lists of Palladium registered and unregistered
marks).

It is sometimes confusing as to when a (R) or a (TM) should be used and when it does
not have to be used. If in doubt, use the notice.

In addition to the "simple" notices (see above), you should use a full notice
(see below) at the beginning of any derivative work. The most common "full"
trademark notices are as follows:

FOR REGISTERED TRADEMARKS:
"(insert name of trademark) (R) is a registered trademark owned and licensed by Kevin
Siembieda and Palladium Books, Inc."

For example, here is a proper trademark for Rifts(R):"Rifts(R) is a registered trademark owned and licensed by
Kevin Siembieda and Palladium Books, Inc."

The proper notice for an unregistered mark is (TM), placed immediately following the
mark.
"(insert name of trademark)(TM) is a trademark owned and licensed by Kevin Siembieda
and Palladium Books, Inc." For example: